The Enforcement Directorate (ED) has initiated proceedings against a businessman KK Srivastava under the Prevention of Money Laundering Act (PMLA) and the Fugitive Economic Offenders Act (FEOA) following a fraud investigation by Raipur Police.
The Enforcement Directorate (ED) has registered a case of money laundering and hawala worth Rs 50 crore against businessman KK Srivastava.
The accused is alleged to have defrauded Arjun Rawat, director of Delhi-based Rawat Associates, of Rs 15 crore, promising a Rs 500 crore contract in smart city project by misrepresenting connections with former Chief Minister Bhupesh Baghel.
When Rawat sought a refund, Srivastava (who is also known as Jyotish) issued cheques that subsequently bounced, prompting legal action.
Police investigations revealed Srivastava had conducted transactions exceeding Rs 500 crore through fake accounts, reportedly created in the names of employees at companies like Zomato and Swiggy in Delhi and Mumbai. Raipur Police alerted the ED and Income Tax Department, leading to the ED’s involvement. Additional inquiries uncovered Srivastava’s extensive investments through shell companies and violations under the Foreign Exchange Management Act (FEMA).
Declared a fugitive, Srivastava and his family absconded, with a Rs 10,000 reward placed on his capture. His anticipatory bail application was denied by the High Court, further advancing ED's action on this case.
